Group 1 - Bank of America downgraded Centene's rating from "Neutral" to "Underperform" with a target price cut from $52 to $30 due to concerns over the impact of the recently signed "Big Beautiful Law" by President Trump [1] - The downgrade is attributed to expected slow growth in the Medicaid market and the potential expiration of exchange subsidies this year, which poses dual pressures on Centene [1] - Analyst Joanna Gajuk indicated that significant changes in risk pools are expected to lead to more downside than upside in exchange pricing risks by 2026, with adverse effects on Medicaid enrollment starting to manifest from 2027 [1] Group 2 - HCA Healthcare's rating was downgraded from "Buy" to "Neutral," with a slight target price adjustment from $410 to $394, as funding cuts from the ACA and Medicaid are anticipated to create headwinds [1] - The decline in insured individuals may result in slower growth in hospital visits and increased bad debt, although HCA is expected to be less affected than peers due to its scale advantages [2] - The law significantly raises the likelihood of the expiration of enhanced exchange subsidies, which is expected to create additional resistance in 2026 [2]